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How film makes its money back

How film makes its money back. Alex Cameron, Sept 2009. data sources. UK FILM COUNCIL BRITISH FILM INSTITUTE CINEMA EXHIBITORS ASSOCIATION BRITISH VIDEO ASSOCIATION ENTERTAINMENT RETAILERS ASSOCIATION FILM DISTRIBUTORS ASSOCIATION SCREEN DIGEST NIELSEN EDI HOLLYWOOD REPORTER IMDB PRO

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How film makes its money back

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  1. How film makes its money back Alex Cameron, Sept 2009

  2. data sources UK FILM COUNCIL BRITISH FILM INSTITUTE CINEMA EXHIBITORS ASSOCIATION BRITISH VIDEO ASSOCIATION ENTERTAINMENT RETAILERS ASSOCIATION FILM DISTRIBUTORS ASSOCIATION SCREEN DIGEST NIELSEN EDI HOLLYWOOD REPORTER IMDB PRO OFFICIAL UK CHARTS COMPANY

  3. why A film is created to make money from it being exhibited.

  4. commercial lifecycle Copies of the film are released for exhibition in different stages. commercial venuEExhibition Exhibition at home Source: UK Film Council, CEA, BVA, ERA

  5. the bottom line A film recoups most of its budget through DVD. Source: Screen Digest, BVA, ERA

  6. many middlemen The more times and places a film is exhibited, the more money it generates. Source: UK Film Council, BFI

  7. International buyers There are around 45 international territories in which the rights to exhibit films are regularly traded. Figures in 000s Source: Nielsen EDI, UK Film Council, BFA, British Council

  8. world markets There are around 20 major international marketplaces. MIPCOM, Milan (October) MIPTV, Cannes (April) Cannes, France (May) San Sebastian, Spain (September) NAPTE, New Orleans (January) AFM, Los Angeles (February) Venice Festival, Italy (September) Karlovy Vary, Czech Republic (July) Sundance, Utah (January) Berlinale, Berlin (February) Toronto Festival, Canada (September) Filmart, Hong Kong (March) Bangkok Festival, Thailand (January) PUSAN, South Korea (October) BAFICI, Buenos Aires (April) Rotterdam Festival, Holland (January) Source: IMDB Pro, UK Film Council

  9. agent guess-timates Sales agents for film rights tend to use the same set of generic internal percentages to make estimates as to how a film will sell internationally. Source: Sales Agents (private communication)

  10. real-world sales In practice, only a core set of territories have a regular and dependable appetite for buying film rights outside the US. Figures in 000s Source: Distributors (private communication)

  11. box office structure A film exhibition sale is generally a 75-25 split between a vendor (cinema / retailer / TV) and a distributor, who deducts 35% commission + costs “off the top”. Source: UK Film Council

  12. uk cinema overview Cinema hasn’t been seriously affected by the recession. 3660 screens in 726 sites with 865, 599 seats, and an average ticket price of £5.18. An average of 236.4 seats per cinema, and 4.7 screens per site. Source: Screen Digest, CEA, UK Film Council

  13. painful truth 40% of independent British films never gross more than 100k at the box office. Source: CEA, IMDB Pro, Nielsen EDI, UK Film Council

  14. release planning Opening in over 100 screens significantly increases cost. Source: UK Film Council

  15. british independence “Slumdog Millionaire” has now overtaken “Four Weddings & A Funeral” as the most successful 100% independent British film in UK cinemas. Source: IMDB Pro, BIFA, UK Official Charts Company

  16. british receipts In the last few years, most 100% British independent films have used cinemas as a marketing platform for DVD and international sales. Source: IMDB Pro, Nielsen EDI

  17. rental deals 49% of all DVD rentals are now generated online. “OFF THE TOP” MODEL ROYALTY MODEL The distributor pays the producer a 35% royalty. The distributor takes 35% commission + 25% costs. Source: UK Film Council, Screen Digest, BVA, ERA

  18. sell-through deals DVD sales data is closely guarded and rarely released other than for overall market statistics. “OFF THE TOP” MODEL ROYALTY MODEL The distributor pays the producer a 12.5% royalty. The distributor takes 35% commission + 50% costs. Source: UK Film Council, BVA, ERA

  19. walmart syndrome Supermarkets have come to dominate DVD sales, pushing the average retail price of a DVD to £7.42. Source: Screen Digest, BVA, ERA

  20. pay-tv deals Pay-Per-View & VoD tend to be more profitable as the costs of sale are borne by the TV platform. Source: UK Film Council

  21. broadcast deals Subscription & free TV fixed-fee licensing deals depend on the performance history of the film. Source: UK Film Council

  22. the corridor Recoupment is organised into a “corridor” and made from a central collection account. Source: Film Finance Handbook, UK Film Council

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